Warehouse Robotics Market Size, Share & Analysis

The warehouse robotics market is estimated to be worth USD 6.1 billion in 2023 and is projected to reach USD 10.5 billion by 2028, at a CAGR of 11.4% during the forecast period. The increasing need for improving the quality and reliability of operations in warehouses is one of the major drivers that fuel the market growth.

Warehouse Robotics Market Forecast to 2028

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Warehouse Robotics Market Trends & Dynamics

Driver: Rise in funding from venture capitalists in warehouse robotics

The warehouse robotics market has witnessed a substantial increase in funding from venture capitalists. This influx of capital is driven by the growing demand for automation and robotics solutions in the logistics and warehousing industry. Venture capitalists recognize the market's potential for high returns on investment due to factors like increased efficiency, cost reduction, and improved operational processes. The funding enables robotics companies to innovate and develop cutting-edge technologies, expand their market presence, and drive industry growth. Overall, the surge in venture capital funding indicates strong investor confidence in the warehouse robotics industry.

Restraint: High setup costs and infrastructure requirements

Warehouse robotics often entail high setup costs due to the sophisticated technology involved and the need for specialized equipment and infrastructure. These costs include the purchase or lease of autonomous mobile robots, installation of supporting hardware such as sensors and conveyors, and implementation of advanced software systems for navigation and coordination. Additionally, training personnel to operate and maintain these robotic systems also adds to the initial investment.

Opportunity: Transformation of warehouses through the integration of industry 4.0 and warehouse robotics

The evolution of traditional warehouses into smart and connected automated warehouses is underway, driven by the integration of Industry 4.0 with warehouse robots. While the automotive industry has been a major user of robotics, other sectors such as pharmaceutical manufacturing, food processing, metal fabrication, and packaging are recognizing the effectiveness of warehouse robots and increasing their deployment. Industry 4.0 aims to create an operational environment where humans and robots can collaborate, allowing robots to receive instructions and respond to their surroundings.

Challenge: Concerns regarding cybersecurity of Connected Robotics in the Industry 4.0

The advent of Industry 4.0 has brought connectivity to production processes, including the integration of collaborative robots. However, this connectivity exposes these processes to heightened cybersecurity risks. Robots can become vulnerable if they are not equipped with up-to-date software and proper network administration. Inadequate security measures can lead to industrial espionage, malware installations, and automated attacks.

Warehouse Robotics Market Ecosystem

The section describes the warehouse robotics ecosystem and the adoption of security solutions in different end-use products and solutions, along with the impact of emerging technologies on them. The market mapping explains a network of R&D institutes, robot manufacturers, system integrators, and end users involved in the complete ecosystem of warehouse robotics market.

The market for AGVs by type to hold second-largest market share during the forecast period

The growth of the AGV segment can be attributed to the increased use of these vehicles in numerous industries, such as automotive, manufacturing, aerospace, and 3PL, to carry heavy loads in less time. The selection of the type of AGV depends on the industry’s requirements and where it is to be used. Customized and hybrid AGVs are being manufactured to cater to the varied requirements of end users and are expected to contribute to the growth of this segment during the forecast period.

Sorting & Packaging by function held the second-largest CAGR during the forecast period

The rise of robotics in warehouses has revolutionized packaging and sorting processes, enhancing efficiency and productivity. These automated systems streamline operations, enabling faster order fulfillment and accurate product categorization, leading to improved customer satisfaction.

E-commerce and 3PL by industry to witness highest CAGR during forecast period

Warehouse robotics have become increasingly popular in the logistics industry, especially for third-party logistics (3PL) providers and e-commerce companies. These advanced robotic systems are revolutionizing the way warehouses operate, offering increased efficiency, accuracy, and productivity.

Asia Pacific held to register highest CAGR in the warehouse robotics market during forecast period

The Asia Pacific region is one of the key markets for warehouse robotics market. The increasing adoption of warehouse robots by SMEs in the region is a major driver for the market in region. Several companies in the region are actively involved in the development, production, and distribution of warehouse robotics. The technology continues to advance, and its applications are expanding to new areas, promoting safety, efficiency, and innovation in the region.

Warehouse Robotics Market by Region

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Top Warehouse Robotics Companies 

The overall warehouse robotics companies is dominated by Daifuku Co., Ltd. (Japan), KION GROUP AG (Germany), KUKA AG (Germany), ABB (Switzerland), FANUC CORPORATION (Japan), Geekplus Technology Co., Ltd. (China), GreyOrange (US), TOYOTA INDUSTRIES CORPORATION (Japan), Omron Corporation (Japan), JBT (US), Honeywell International Inc. (US), Murata Machinery, Ltd. (Japan), Yaskawa Electric (Japan), Knapp (Austria), SSI Schaefer (Germany), Teradyne (US), Hikrobot (China), Shopify (Canada) ,Scallog (France), Locus Robotics (US), Zebra Technologies (US), Vecna Robotics (US), IAM Robotics (US), inVia Robotics (US) and Magazino (Germany). These companies have used both organic and inorganic growth strategies such as product launches, acquisitions, and partnerships to strengthen their position in the market.

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Scope of the Report

Warehouse Robotics Market Highlights

The study segments the warehouse robotics market By Type, By Function, Payload Capacity, Industry, and Region

Recent Developments

• In May 2023, KUKA (Germany) launched the KR CYBERTECH series Edition robot makes the perfect choice for cost-effective automation of handling and basic machining tasks. The multi-talented KR CYBERTECH feeds components into assembly processes, checks workpiece quality, and grinds and polishes metal parts. Its flexibility makes it particularly popular in a wide range of industries, including the dynamic metal and electronics industries.
• In May 2023, FANUC Corp. (Japan), the world leader in CNCs, robotics, and ROBOMACHINEs introduced two new high-payload capacity collaborative robots, and demonstrate a wide range of automation solutions at Automate 2023. The CRX-25iA cobot will demonstrate its enhanced 30kg payload capacity by easily handling a 30kg kettlebell with full wrist articulation.
• In February 2023, KION Group has entered into a strategic partnership with Li-Cycle Holdings Corp. (“Li-Cycle”), an industry leader in lithium-ion battery resource recovery. KION Group and Li-Cycle held a signing ceremony at KION GROUP AG’s Frankfurt headquarters to finalize the definitive agreement for the partnership. It will initially remain in place until 2030. According to the agreement, the environmentally friendly recycling of lithium-ion batteries will begin in the second half of this year. KION Group brands sell such batteries worldwide with their electric industrial trucks and automated warehouse logistics solutions.

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